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Starbucks Corporation
🇺🇸 SBUX · NYSE/NASDAQ · US8552441094
Consumer
USD 103.83 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
79.2
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 103.83 ÷ 1.31 = 79.2
TTM period through: 2026-03-31
Forward P/E (estimated): 35.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 79.6
Net Debt/EBITDA (TTM)
4.2x
Latest quarter: 19.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 19.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
EV/EBITDA
29.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.39%
TTM: 2.39%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 2.39%
Trailing Yield (TTM, last 12 months): 2.39%
Payout Ratio (Fwd)
189.3%
TTM: 149.3%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 189.3%
Payout (TTM): 149.3%
Cash Flow Payout (TTM): 64.4%
FCF Coverage (TTM): 0.97x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
7.8%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 15 May 2027 | — | USD | 0.62 |
| Forecast* | Quarterly | — | 13 Feb 2027 | — | USD | 0.62 |
| Forecast* | Quarterly | — | 14 Nov 2026 | — | USD | 0.62 |
| Declared | Quarterly | 01 Jul 2026 | 14 Aug 2026 | 28 Aug 2026 | USD | 0.62 |
| Paid | Quarterly | 15 Apr 2026 | 15 May 2026 | 29 May 2026 | USD | 0.62 |
| Paid | Quarterly | 11 Nov 2025 | 13 Feb 2026 | 27 Feb 2026 | USD | 0.62 |
| Paid | Quarterly | 01 Oct 2025 | 14 Nov 2025 | 28 Nov 2025 | USD | 0.62 |
| Paid | Quarterly | 24 Jun 2025 | 15 Aug 2025 | 29 Aug 2025 | USD | 0.61 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Starbucks possesses a dominant global brand, but its deteriorating financial metrics and extreme valuation make it entirely unsuitable for conservative dividend strategies. With free cash flow failing to cover the sub-target 2.39% yield, rising debt levels, and significant structural labor challenges, the risks heavily outweigh any potential rewards. Not recommended for new positions.
Sector Context
Starbucks operates globally as a premier roaster, marketer, and retailer of specialty coffee within the consumer restaurant sector. While successful retail chains can generate strong cash flows, they are highly sensitive to labor inflation, unionization pressures, and shifts in consumer discretionary spending, making margin protection a critical focus for dividend sustainability.
📊 Strategy Analysis
- • Maintains a strong historical dividend track record with a 100/100 consistency score and 8 consecutive years of dividend growth
- • Top-line revenue continues to expand despite operational headwinds, demonstrating a 10-year growth of 74% and a 5-year CAGR of 5.0%
⚠ What to Watch
- • Extreme valuation with a TTM P/E of 79.24 is entirely detached from the strategy's 8-15x target range and implied fair value upper bound of $23.59
- • Deteriorating financial trajectory marked by a 5-year EPS decline (-14.4% CAGR), net margins contracting to 5.0%, and elevated Net Debt/EBITDA of 4.23x
- • Dividend sustainability is heavily strained, offering a sub-target 2.39% yield that is not fully covered by free cash flow (0.97x coverage)
- • Facing significant structural headwinds, including systemic labor unionization driving permanent cost increases and consumer boycotts impacting store traffic
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.